1/23/24 – More on Condos and Trigger Leads

There are quite a few things of importance today, and I will go to the condo thing first!

Mariposa: No Loans until further notice. Yes, people are saying they can do them, and the HOA is pushing people to lenders, and we have all been using the same bank that says no more!

West Creek Condos and Townhomes: No Loans until further notice. Yes, people are saying they can do them, and the HOA is pushing people to lenders, and we have all been using the same bank that says no more!

American Beauty Village West: It looks like the issue is not Insurance, but they have a reserve issue now! We can do non-warrantable loans there with 20% down! YAY! It’s a start, and we hope things clear up and regular financing will be available in the future.

Madison at Town Center: FHA financing is available with 3.5% down. Non-warrantable loans can be done with a minimum of 10% down until the litigation is resolved.

Every complex with insurance issues is in jeopardy of ending up like Mariposa and West Creek! Once the bank lending in these complexes hits their saturation point, they will stop lending, and nobody else will lend money until the Insurance is corrected. If you have clients in any of the complexes that are on the naughty list, you should be calling them and telling them what is going on, and if they want to move in less than 2-3 years, then now is the time to sell. Getting most of these complexes back to normal will likely take 2.5-3 years.

Do you ever get a call from a client who said they are getting calls from different lenders all day after applying for a loan? Many online lenders purchase trigger leads from TransUnion, Equifax, and Experian. They sell your buyer’s information to as many lenders as they can to make money, and the lenders are hounding clients begging for business! National Association Of Mortgage Bankers is trying to stop this and asking our senators to support a Homebuyers Privacy Protection Act! This will stop Trigger Leads and the annoying calls our buyers get! You can help by going to this website and spending 2 minutes asking your Senator to support your client’s privacy!

https://namb.org/call-to-action/#/26

Condo / Townhome issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE:

1. Scenic Hills – Insurance
2. Bouquet Canyon Village – Insurance
3. Madison at Town Center: FHA financing is available with 3.5% down. Non-warrantable loans can be done with a minimum of 10% down until the litigation is resolved.
4. Cornerstone – Insurance
5. Canyon Oaks – Insurance
6. Brookside Walk – Insurance – NEW as of last week
7. Shadow Ridge – Oak Park – Insurance
8. Sierra Glen Condos – Insurance
9. American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough!

As of today, the list of condos that are having more severe issues:

1. Mariposa: No Loans until further notice. Yes, people are saying they can do them, and the HOA is pushing people to lenders, and we have all been using the same bank that says no more!
2. West Creek Condos and Townhomes: No Loans until further notice. Yes, people are saying they can do them, and the HOA is pushing people to lenders, and we have all been using the same bank that says no more!
3. American Beauty Village West: It looks like the issue is not Insurance, but they have a reserve issue now! We can do non-warrantable loans there with 20% down! YAY! It’s a start, and we hope things clear up and regular financing will be available in the future.
4. Bridgewater, Emeryville  - Insurance issues
5. Cabrini Villas, Burbank  - Maybe able to do 10% down, case by case! Please provide a specific address & LTV & occupancy.
6. Morada, San Diego  - Insurance issues.
7. Parkwoods, Oakland  - Insurance issues.
8. The Summit, San Diego  - Insurance issues
9. The Met at Warner Center, Woodland Hills  - Due to the project size, we can lend with 10% down on the project side that is on Burbank and Owensmouth. They are no longer lending for the project section on Canoga.

Please let me know if you hear anything new on condos or townhouses.

Rates are higher today and have been trending higher for a couple of weeks now. Let’s hope the tide turns soon!

• 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge
• We do loans in all states, so call me with anything you need.  
• Government Loans (FHA / VA) are in the high 5’s and low 6’s
• Conventional Loans up to $765,550.00 are in the low to mid 6’s
• High Balance Loans $765,550.00-$ 1,148,325.00 are in the mid to high 6’s
• Jumbo loans above $1,148,325 are in 6’s
• Bank statement loans - They are available with 10% down again! 8’s and 9’s depending on down and credit score.
• No income qualifier – 40% down with reserves! In the 8’s!
• 0 down loans are in the high 7’s – 660 credit score min right now, up to $740,000.00.
• Private Money lenders - hard Money Loans – 35% down!
• No Ratio Loans 30% down
• Debt Service Coverage loans with as little as 25% down
• Bridge Loans - typically 7.500% with limited fees – and they get you where you need to go!
• 0 down California Dream for all Equity Share – Postponed until February 2024???
• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!

Interest rates are subject to change without notice! Above are LA County Loan Limits.

I am available and in the office all week. Let me know if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. Please text (661-714-6258) or email me at Mike@AugustaFinancial.com.

Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!